May 98:  (Mobile Europe)

PREMIUM RATE REFUNDS BLOCKED

Sweden - Two companies offering to convert mobile subscribers' airtime
credits to cash by means of calls to a premium rate (900) number have had
access to their service blocked by network operator Telia.

The deal applies to special tariffs offered by Swedish GSM operators Telia
Mobile and Comviq, for which the customer pays a monthly fee of about
SEK150 (USD18), all of which can be used to pay for calls. If the credit is
not used, it rolls over to the next month. Some long-standing customers
have accumulated up to USD1000 in airtime credits, which they will forfeit
if they end their subscription.

Two Swedish companies set up premium-rate (900) phone services offering
subscribers a means to convert these airtime credits to cash.  On calling
the number, subscribers would be charged SEK25 (USD3) per minute, of which
the refund company takes about 25%, the 900-operator (Telia) about 20%, and
the mobile operator about 5%, leaving 50% for the subscriber. The recipient
of the payment was to be identified by caller id, and refunds sent out only
to registered callers.

Network operator Telia has, however, closed down the service, by not
opening the premium-rate numbers. Ralph Arnestig of Telia said: "There is a
lack of security, it opens the door to fraud. It can be used illegally,"
but added that the door is not locked shut. Telia did, however, set up a
premium-rate number for one of the companies, Cash Back, but closed it
after a couple of days.

"It was never intended that customers would be able to get saved money
back, and we do not accept that our pay-numbers are used in that way," said
Arnestig.

Markus Wedin, of Cash Back, is waiting for Telia to reconsider. He believed
the decision is due to internal rivalry within Telia, as, he said, the
local Telia office has been very supportive.

Another GSM operator, Comviq said that it is not losing money through this
scheme, but if is becomes common it will reassess the situation.